Oil prices fell on Monday, as easing geopolitical risks in the Middle East and the prospect of another OPEC+ production increase in August improved supply expectations amid uncertainty about the outlook for global demand, UNN reports, citing Reuters.
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Brent crude futures fell 13 cents, or 0.19%, to $67.64 a barrel by 03:44 GMT (06:44 Kyiv time), ahead of the expiry of the August contract later on Monday. The more active September contract was at $66.62, down 18 cents.
US West Texas Intermediate crude fell 32 cents, or 0.49%, to $65.2 a barrel.
Last week, both benchmarks showed their biggest weekly drop since March 2023, but they are set to end June higher, showing a second consecutive monthly gain of over 5%.
Oil heading for steepest weekly decline in two years27.06.25, 10:43
The 12-day war, which began with Israel's attack on Iran's nuclear facilities on June 13, led to a surge in Brent crude prices, which rose above $80 a barrel after the US bombed Iran's nuclear facilities, and then fell to $67 after US President Donald Trump announced a ceasefire.
The market has lost most of the geopolitical risk premium priced in after the ceasefire between Iran and Israel, IG Markets analyst Tony Sycamore said in a note.
Four delegates from OPEC+ said the group intends to increase production by 411,000 barrels per day in August after similar increases in May, June and July.
OPEC+ is scheduled to meet on July 6, which will be the fifth monthly increase since the group began unwinding production cuts in April.
However, bearish pressure (characterized by falling prices) from fears of a slowdown in global oil demand, especially from China, is likely to persist, the publication writes.
Uncertainty about global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Factory activity in China contracted for a third straight month in June, as weak domestic demand and a decline in exports weighed on manufacturers amid US trade uncertainty.
In the US, the number of active oil rigs, an indicator of future production volume, fell by six last week to 432, the lowest since October 2021, Baker Hughes reported.